SOIL provides targeted exposure to fertilizer producers around the world. The broader MOO includes companies involved in agri-chemicals, animal health, fertilizers, seeds and traits, farm/irrigation equipment and farm machinery, along with agricultural products, agriculture and fishing and livestock plantations. PAGG also takes broad coverage of agriculture and farming related businesses.
The fertilizer industry strengthened on the potential merger activity. Fertilizer companies have suffered from lower profits in recent years after crop nutrient prices fell to multi-year lows on excessive supply and demand and declining commodity prices.
“MOO is clearly in an uptrend, as evidenced by a series of higher lows (HL) and higher highs (HH). This price action is mirrored by the higher lows and higher highs in MOO’s MACD (moving average convergence divergence) indicator, which tells us that MOO’s uptrend is likely to continue,” reports TheStreet.
MOO’s technicals are also appealing.
“In December, MOO reached a fresh 52-week high; then the ETF pulled back sharply, creating a potential buying opportunity. MOO’s MACD is on the cusp of executing a bullish crossover (shaded yellow). That buy signal could occur as soon as today,” notes TheStreet.
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